Holdings In Common: S&P Dividend Aristocrats ETF And Russell 1000 High Yield Dividend ETF

|
 |  Includes: CINF, DBD, ED, HCP, HDIV, JNJ, KMB, LEG, MCY, ORI, RPM, SDY, SON, T, VVC
by: Richard Shaw

Common holdings between the 60 stocks of the S&P 1500 Dividend Aristocrats Index (ETF proxy SDY) and the 75 stocks of the new Russell Large-Cap High Yield Dividend Index (ETF proxy HDIV) create an interesting extra strong filter for conservative equity income oriented investors.

The Russell ETF was launched last week (fund webpage).

SDY consists of those 60 stocks within the S&P 1500 composite that have paid and increased dividends each year for at least 25 years. That is certainly a strong endorsement, but it does not make a particular statement about any other performance dimension.

HDIV consists of those 75 stocks within the Russell 1000 with high dividend yields and quality characteristics such as dividend growth, earnings stability and sustained profitability.

The table below shows all 75 holdings of the new Russell ETF, and the 14 stocks at the intersection of the holdings of the Russell and Aristocrats ETFs.

We are not expressing any opinion on any of the stocks in this table, other than that 14 of them satisfy two independent and conservative rule sets by two leading research organizations.

The fact is that we previously owned and exited some of those 14 at various times in the past, and would not choose to own some of them at this time. We do own three of them now.

The intersecting stocks are a mixed bag, we think, but it is nonetheless interesting to see how the new Russell ETF compares to the Aristocrats ETF.

In a larger study, we cross referenced 8 dividend ETFs, including HDIV, and find spotty overlap among them all, with the greatest overlap with any of them by VYM, a Vanguard dividend ETF.

Full Holdings of HDIV with Intersecting SDY Holdings

Symbol HDIV SDY
CINF X X
DBD X X
ED X X
HCP X X
JNJ X X
KMB X X
LEG X X
MCY X X
NUE X X
ORI X X
RPM X X
SON X X
T X X
VVC X X
AEE X
AEP X
AGL X
AJG X
ARCC X
BMY X
CAG X
CFFN X
CFR X
CIM X
CLI X
COP X
CTL X
DD X
DLR X
DO X
DTE X
EQR X
EXC X
FE X
GEF X
HAS X
HCN X
HE X
HNZ X
IP X
KIM X
LLY X
LNT X
LRY X
MAC X
MCHP X
MRK X
MTB X
NEE X
NST X
NYX X
O X
PAYX X
PBCT X
PDM X
PEG X
PNW X
PPL X
PRE X
RAI X
REG X
RTN X
RYN X
SCCO X
SE X
SNH X
SO X
TE X
TEG X
UGI X
VNO X
VTR X
VZ X
WM X
XEL X
Click to enlarge

Disclosure: QVM has long positions in JNJ, KMB and T among those highlighted (as well as several others in the Russell ETF not highlighted) in some managed accounts as of the creation date of this article (March 18, 2012).

Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on the QVM site available here.